Body corporate insurance is a vital component of sectional title schemes, ensuring that buildings, common property, and shared facilities are adequately protected against risks such as fire, weather damage, theft, and liability claims. In South Africa, this type of insurance is governed by the Sectional Titles Schemes Management Act (STSM Act), which mandates that bodies corporate must insure the replacement value of buildings and other prescribed risks
Comprehensive Coverage: Policies typically cover buildings, boundary walls, gate motors, security systems, and irrigation systems, providing peace of mind for property owners
Liability Protection: Additional cover may include trustee indemnity, fidelity cover, and employee indemnity, safeguarding against financial losses
Compliance: Bodies corporate must ensure their insurance policies align with statutory requirements and industry standards
Valuations play a crucial role in determining the replacement cost of buildings for insurance purposes. Accurate valuations are essential to avoid underinsurance, which can lead to reduced claim payouts, or overinsurance, which results in unnecessary premium costs. Valuations typically account for demolition, rubble removal, reconstruction costs, and additional services required to restore the property